What contribute to the industry by publishing an article and sharing with your community of peers.
Your boss now wants you to help Higgs Bassoon Corporation. Higgs Bassoon Corporation is a custom manufacturer of bassoons and other wind instruments. Its current value of operations, which is also its value of debt plus equity, is estimated to be $200 million. Higgs has zero coupon debt outstanding that matures in 3 years with $110 million face value. The risk-free rate is 5%, and the standard deviation of returns for similar companies is 60%. The owners of Higgs Bassoon view their equity investment as an option and would like to know its value. Start with the attached partial model, and answer the following questions:
- Using the Black-Scholes option pricing model, how much is the equity worth?
- How much is the debt worth today? What is its yield?
- How would the equity value change if the company used risk management techniques to reduce its volatility to 45%? Can you explain this?
- Graph the cost of debt versus the face value of debt for values of the face value from $10 to $160 million.
- Graph the values of debt and equity for volatilities from 0.10 to 0.90 when the face value of the debt is $100 million.Unit VI Article Critique
For this assignment, choose a peer-reviewed article to critique related to International Equity Financing or a sub-topic related to this unit. Use the databases within the CSU Online Library, or use another source that contains peer-reviewed articles. The purpose of this assignment is for you to practice reviewing articles that contribute to the industry. The authors of these articles are researchers and professionals who have shared or experimented with ideas that demonstrate potential to improve the industry. As a professional in the industry, it is in your best interest to review the literature and trends. This provides you with the opportunity to read about what was successful and how it was accomplished. Plus, it allows you to analyze what was unsuccessful, how you can improve it, or at least how you can avoid repeating the mistakes of others. Use these skills to contribute to Research Papers and other scholarly writings. If you have not already, hopefully, you will contribute to the industry by publishing an article and sharing with your community of peers.
As you read the article you choose for this assignment, consider the following questions: How could the topic of this article apply to your personal or professional life? How could it apply to an organization you have observed?
The article you choose must meet the following requirements:
be peer reviewed,
relate to the concepts within this course, and
be at least ten pages in length.
The writing you submit must meet the following requirements:
Your writing must be at least two pages in length.
Identify the main topic/question.
Identify the author’s intended audience.
Critique the article and share your thoughts—what appears to be valid and invalid?
Do you agree with the author’s assertions? Why, or why not?
Try to find an article that can tie into your portfolio project for the course. Further information and research on important concepts and topics will allow you to attain a better analysis of the MNC for your portfolio project.
Format your Article Critique using APA style. Use your own words, and include citations and references as needed to avoid plagiarism.
Information about accessing the Blackboard Grading Rubric for this assignment is provided below